Potential Bidders of Airport Subdivision II lots

Proposed Covenants for Airport Subdivision II

The City Council met on January 27th and February 3rd to discuss proposed plat and deed covenants and restrictions for the new Airport Subdivision II. The proposed Subdivision is designed to provide 21 lots of over an acre each, to be dedicated to “aviation uses,” and not be primarily residential. The proposed covenants and restrictions are designed to enhance and protect aviation uses over other uses.

The City desires input from the aviation community and those potentially interested in purchasing these subdivision lots as to the desirability of such covenants and sufficiency of them.

The wording used herein is not final and is meant to convey ideas.

The proposed terms are more “residential friendly” than the first Airport Subdivision, in that they propose to affirmatively allow single-family residential structures so long as they include a hangar or a permanent constructed single aircraft tie-down area.

The proposed terms also include an annual $500 fee per lot for an Airport Boundary Crossing Access Fee.
Proposed Covenants and Restrictions

• 25-year covenant period OR a shorter period in the event that the airport and its operations are earlier abandoned, curtailed, or substantially permanently impaired.

• All lots in Airport Subdivision II enrolled in an Airport Service Zone subject to a mandatory annual Airport Boundary Crossing Fee of $500 per year (regardless of whether the lot is developed or not, and regardless of whether the lot is used for aircraft). All paid Boundary Crossing fees will go into a dedicated fund and be utilized by the City for airport taxi-way, landing strip, and other airport amenities, construction, repair, and operations as may be deemed advisable by the City Council.

• No subdividing of individual lots.

• 50-foot height limit on all structures built or erected in subdivision.

• No lot shall be used as a dump or disposal site for any trash or refuse. Upon a lot owner beginning development of a lot, all slash, debris and construction detritus shall be removed within six months of substantial completion of the project. In addition, owners agree to adhere to all future refuse and litter restrictions per City Code of Ordinances.

• Mandatory Alaska DEC septic regulations.

• The City undertakes no duty to continue to operate the airport, allow it to be operated, or to expend funds on the airport (except for any accumulated funds in the Airport Boundary Crossing dedicated account).
Envisioned Sale Process

The City proposes to install the electric utility and roadway/taxiway improvements in the subdivision prior to sale of the lots.

The City proposes to sell the lots as required by Ordinance at public auction with a minimum price no lower than the appraised value of the lot (after installation of road/electrical). The City is considering selling some or all of the lots with similar provisions to those used in the Airport I Subdivision sale. The City is considering allowing giving the successful bidder on some specific lots the right to purchase the immediately adjoining lot at the minimum price.

Terms of Sale: 5% down with balance paid within 30 days. Unsold lots will be sold over the counter for the minimum price, upon such terms and at such time as may be set by the Council.

The average cost per lot is presently ESTIMATED to be around $12,000 to $15,000 per lot. This estimate is based upon estimates that are over a year old and is only given to let folks know that the lots will cost at least as much. If the true figures for development prove too high to attract buyers, the City may abandon, re-figure, or postpone the subdivision.

Subdivision I Use Restrictions

The first airport subdivision included the following use restrictions. They will be continued in the Airport II, with the addition that an approved use shall be “Single family residential structures so long as they include a hangar or a permanent constructed single aircraft tie-down area.”

Subdivision I: “a restriction to aviation or airport related uses, such as aircraft hangars, aircraft tie-downs, commercial operations such as aircraft maintenance, air taxi, aircraft construction and conversion, flight training, commercial air cargo operations with necessary warehouse facilities to contain items actually arriving or departing from the City Airport.”

In addition the Council adopted five “clarifications” as to how to interpret the Ordinance, which was outlined in a letter, dated June 6, 2003, to new lot owners in Airport Subdivision I.